Is Panini still suing Fanatics in 2024?

By Eliud Alano March 10, 2024 23:50

In the world of sports trading cards, Panini and Fanatics have been engaged in a legal battle, with a pair of lawsuits between the trading card rivals. The dispute comes down to licensing rights for professional sports leagues and their associated trading cards. Let's delve into the details of this ongoing legal battle and explore the latest developments.

Panini's Antitrust Lawsuit Against Fanatics

Last week, Panini filed an antitrust lawsuit against Fanatics, alleging that it had engaged in "calculated, intentional, anticompetitive conduct" to establish a monopoly in the trading card industry. Panini's lawsuit centers on Fanatics securing long-term deals with both the NBA and NFL leagues and their unions to take over the exclusive rights once the existing deals with Panini expire in 2025 and 2026, respectively.

Panini alleged that Fanatics positioned itself to drive Panini and other potential competitors out of the market and erected barriers to entry blocking their return. The company also claimed that it was not given an opportunity to bid or otherwise compete for the licenses Fanatics acquired.

Fanatics' Countersuit

In response to Panini's antitrust lawsuit, Fanatics countersued, alleging interference with business relations and a breach of duty to negotiate in good faith. Fanatics denied engaging in antitrust behavior and stated that it won the rights because of a superior offer and because Panini had "failed to capitalize on its opportunities".

Fanatics also accused Panini of embarking on a protracted, unlawful, and deceitful campaign of unfair trade practices, strong-arm tactics, and tortious misconduct to hamper Fanatics Collectibles' nascent business, in the hopes that it could force Fanatics Collectibles to pay an extortionate amount for Panini to terminate its licenses early.

Legal Dispute Escalation

The legal battle between the two trading card rivals has escalated in the Southern District of New York, with both parties engaging in testy critiques of each other's actions. Fanatics recently claimed that Panini's case is "not only legally baseless, but also hypocritical," while Panini insisted that Fanatics' case is "a screed consisting mainly of inappropriate commentary, argument, and derogatory statements".

The legal dispute centers on Fanatics obtaining long-term exclusive licenses from the NBA, NBPA, MLB, MLBPA, NFL, and NFLPA, all of which were previously held by either Topps or Panini, and the resulting legal implications of that development.

Future Rulings

The lawsuits brought forth by both Panini and Fanatics are currently being presided over by U.S. District Judge Jennifer Rearden. It is expected that Judge Rearden will issue rulings in the weeks ahead.

The legal battle between Panini and Fanatics in the sports trading card industry continues to unfold. Both companies have accused each other of engaging in unfair trade practices and anticompetitive behavior. As the legal dispute progresses, it remains to be seen how the court will rule on the various claims and counterclaims put forth by these two major players in the trading card space.